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What:Shares of online flea marketEtsy Inc.(NASDAQ: ETSY) were flying higher for the second time this week after the company posted strong revenue growth and upbeat guidance in its second-quarter report. As of 11:56 a.m. EDT, the stock was up 11.8%.
So what:The online marketplace for handmade and vintage goods said revenue jumped 39% in the quarter to $85.3 million, breezing past estimates at $81 million. On the bottom line, the company posted a loss of $0.06 per share, as it was hurt by foreign-currency exchange rates. That was a penny better than a year ago but worse than estimates for a loss of just a penny.
CEO Chad Dickerson said that the company expanded its community to 1.7 million active sellers and 26.1 million active buyers. Gross merchandise sales were up 22.6% in the quarter, to $669.7 million, driving a similar percentage increase in marketplace revenue. Revenue from seller services, which include features like promotional placements and direct checkout, jumped 58%, to $47.1 million, and now makes up the majority of revenue.
Now what:Etsy also raised its revenue guidance for the year, saying it now expects an increase of 25 to 28%, up from a previous range of 20 to 25%. Considering that revenue has jumped 39.4% through the first half of the year, there is a good chance the company will beat that forecast.
This week has been a banner one for Etsy stock as shares soared on Monday after a bullish note and buy rating fromCitigroup, which said that analysts were underestimating the stock's potential. Etsy also showed some traction on profitability with $4.7 million in operating income in the quarter. E-commerce has proven to be a difficult sector to make money in, but Etsy could have the unique assortment of merchandise and the right model to be an exception.
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Jeremy Bowman has no position in any stocks mentioned. The Motley Fool owns shares of Etsy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.